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Paypal (PYPL) Gains As Market Dips: What You Should Know
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Paypal (PYPL - Free Report) closed at $80.18 in the latest trading session, marking a +0.88% move from the prior day. This move outpaced the S&P 500's daily loss of 0.2%. Meanwhile, the Dow lost 1.14%, and the Nasdaq, a tech-heavy index, added 1.39%.
Heading into today, shares of the technology platform and digital payments company had gained 15.27% over the past month, outpacing the Computer and Technology sector's gain of 3.75% and the S&P 500's gain of 4.01% in that time.
Paypal will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2023. The company is expected to report EPS of $1.19, up 7.21% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.39 billion, up 6.85% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Paypal. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Paypal is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Paypal is holding a Forward P/E ratio of 16.6. This represents a discount compared to its industry's average Forward P/E of 41.43.
Investors should also note that PYPL has a PEG ratio of 1.05 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.13 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PYPL in the coming trading sessions, be sure to utilize Zacks.com.
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Paypal (PYPL) Gains As Market Dips: What You Should Know
Paypal (PYPL - Free Report) closed at $80.18 in the latest trading session, marking a +0.88% move from the prior day. This move outpaced the S&P 500's daily loss of 0.2%. Meanwhile, the Dow lost 1.14%, and the Nasdaq, a tech-heavy index, added 1.39%.
Heading into today, shares of the technology platform and digital payments company had gained 15.27% over the past month, outpacing the Computer and Technology sector's gain of 3.75% and the S&P 500's gain of 4.01% in that time.
Paypal will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2023. The company is expected to report EPS of $1.19, up 7.21% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.39 billion, up 6.85% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Paypal. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Paypal is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Paypal is holding a Forward P/E ratio of 16.6. This represents a discount compared to its industry's average Forward P/E of 41.43.
Investors should also note that PYPL has a PEG ratio of 1.05 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.13 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PYPL in the coming trading sessions, be sure to utilize Zacks.com.